Budapest, 24 September 2026 – “Strong, predictable regulation is not an obstacle to competitiveness, it is a prerequisite for it,” stated MNB Governor Mihály Varga in his opening speech at the Magyar Nemzeti Bank’s Financial Stability Conference. Varga stressed that financial stability created the foundation for economic growth, and consequently Europe needed innovation, unified capital markets and a speedier digital transition in order to retain its global economic position.
Governor Varga pointed out that central banks must work to strengthen the resilience of the financial system even in times of rapid technological change, geopolitical realignment and volatile macroeconomic conditions. As he had previously said, financial stability boosted investor confidence and facilitated safe savings, as well as the efficient allocation of capital. The Governor recalled that the European financial system remained heavily fragmented, with varying supervisory requirements and differences in national regulation posing a significant administrative burden. Therefore, according to Varga, simpler rules, the elimination of duplication and a more unified European regulatory framework were needed, while still allowing room for individual countries’ specificities if justified. The MNB Governor also discussed how preserving financial stability must not mean restricting innovation. Digitalisation and artificial intelligence in particular had the potential to significantly alter financial services, improving operating efficiency, fraud detection and user experience, while at the same time posing risks. He highlighted that Europe was lagging behind when it came to the infrastructure and know-how required for the most advanced artificial intelligence models, which increased the external dependency and vulnerability of the EU banking sector. For this reason in particular, it was necessary to establish a financial system which could remain technologically advanced and resilient in the long run. Governor Varga explained that conferences such as this made it possible to achieve forward-looking results in this area as well through international knowledge sharing.